Required information

Exercise 2-3A (Algo) Effect of accruals on the financial statements LO 2-1, 2-2, 2-3

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[The following information applies to the questions displayed below.]

Milea Incorporated experienced the following events in Year 1, its first year of operations:

1. Received $14,500 cash from the issue of common stock.
2. Performed services on account for $45,000.
3. Paid the utility expense of $1,500.
4. Collected $30,240 of the accounts receivable.
5. Recorded $7,600 of accrued salaries at the end of the year.
6. Paid a $1,450 cash dividend to the stockholders.

Exercise 2-3A (Algo) Part a

Required

1. Record the events in general ledger accounts under an accounting equation. In the last column of the table, provide appropriate account titles for the Retained Earnings amounts. The first transaction has been recorded as an example. (Not all cells require input. Enter any decreases to account balances with a minus sign.)

Required information

Exercise 2-3A (Algo) Effect of accruals on the financial statements LO 2-1, 2-2, 2-3

Skip to question

[The following information applies to the questions displayed below.]

Milea Incorporated experienced the following events in Year 1, its first year of operations:

1. Received $14,500 cash from the issue of common stock.
2. Performed services on account for $45,000.
3. Paid the utility expense of $1,500.
4. Collected $30,240 of the accounts receivable.
5. Recorded $7,600 of accrued salaries at the end of the year.
6. Paid a $1,450 cash dividend to the stockholders.

Exercise 2-3A (Algo) Part b

1. Prepare the income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for the Year 1 accounting period.

Complete this question by entering your answers in the tabs below. Prepare the balance sheet for the Year 1 accounting period. 'repare the statement of changes in stockholders' equity for the Year 1 accounting period. Complete this question by entering your answers in the tabs below. Prepare the income statement for the Year 1 accounting period. input. Enter any decreases to account balances with a minus sign.) Prepare the statement of cash flows for the Year 1 accounting period. (Enter cash outflows with a minus